DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
USA - NASDAQ:DBX - US26210C1045 - Common Stock
29.13 USD
+0.16 (+0.55%)
29.13 USD
0 (0%)
DBX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. While DBX has a great profitability rating, there are quite some concerns on its financial health. DBX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year DBX was profitable.
DBX had a positive operating cash flow in the past year.
DBX had positive earnings in 4 of the past 5 years.
DBX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DBX has a better Return On Assets (17.46%) than 91.90% of its industry peers.
With an excellent Return On Invested Capital value of 52.97%, DBX belongs to the best of the industry, outperforming 98.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DBX is significantly above the industry average of 11.85%.
The 3 year average ROIC (17.97%) for DBX is below the current ROIC(52.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | N/A | ||
| ROIC | 52.97% |
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
1.3 Margins
With an excellent Profit Margin value of 19.16%, DBX belongs to the best of the industry, outperforming 82.75% of the companies in the same industry.
DBX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.67%, DBX belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
In the last couple of years the Operating Margin of DBX has grown nicely.
DBX's Gross Margin of 81.35% is amongst the best of the industry. DBX outperforms 85.21% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.67% | ||
| PM (TTM) | 19.16% | ||
| GM | 81.35% |
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
DBX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
DBX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DBX has been reduced compared to 5 years ago.
The debt/assets ratio for DBX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that DBX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.66, DBX is doing worse than 66.55% of the companies in the same industry.
The Debt to FCF ratio of DBX is 3.00, which is a good value as it means it would take DBX, 3.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DBX (3.00) is better than 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Altman-Z | 0.66 |
ROIC/WACC5.26
WACC10.07%
2.3 Liquidity
DBX has a Current Ratio of 0.60. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
DBX has a worse Current ratio (0.60) than 88.03% of its industry peers.
DBX has a Quick Ratio of 0.60. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DBX (0.60) is worse than 88.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.32% over the past year.
Measured over the past years, DBX shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.64% on average per year.
The Revenue has decreased by -0.04% in the past year.
Measured over the past years, DBX shows a quite strong growth in Revenue. The Revenue has been growing by 8.93% on average per year.
EPS 1Y (TTM)22.32%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%18.33%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.39%
3.2 Future
The Earnings Per Share is expected to grow by 2.92% on average over the next years.
Based on estimates for the next years, DBX will show a decrease in Revenue. The Revenue will decrease by -1.17% on average per year.
EPS Next Y8.83%
EPS Next 2Y7.95%
EPS Next 3Y4.73%
EPS Next 5Y2.92%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.97%
Revenue Next 5Y-1.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.63, the valuation of DBX can be described as very reasonable.
89.08% of the companies in the same industry are more expensive than DBX, based on the Price/Earnings ratio.
DBX is valuated cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.96, the valuation of DBX can be described as reasonable.
89.08% of the companies in the same industry are more expensive than DBX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.35. DBX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 86.62% of the companies listed in the same industry.
94.37% of the companies in the same industry are more expensive than DBX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 12.87 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DBX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)0.28
EPS Next 2Y7.95%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
No dividends for DBX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.13
+0.16 (+0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.64%
Inst Owner Change-0.02%
Ins Owners5.95%
Ins Owner Change-1.44%
Market Cap7.86B
Revenue(TTM)2.53B
Net Income(TTM)485.40M
Analysts50.53
Price Target28.32 (-2.78%)
Short Float %10.37%
Short Ratio5.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.38%
Min EPS beat(2)11.32%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)12.53%
Min EPS beat(4)11.32%
Max EPS beat(4)15.74%
EPS beat(8)8
Avg EPS beat(8)11.93%
EPS beat(12)12
Avg EPS beat(12)11.35%
EPS beat(16)16
Avg EPS beat(16)9.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)0.16%
Revenue beat(8)1
Avg Revenue beat(8)-0.33%
Revenue beat(12)3
Avg Revenue beat(12)-0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.15%
PT rev (1m)-1.02%
PT rev (3m)-1.47%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.96 | ||
| P/S | 3.1 | ||
| P/FCF | 8.81 | ||
| P/OCF | 8.71 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.87 |
EPS(TTM)2.74
EY9.41%
EPS(NY)2.93
Fwd EY10.04%
FCF(TTM)3.31
FCFY11.35%
OCF(TTM)3.34
OCFY11.48%
SpS9.39
BVpS-4.84
TBVpS-6.67
PEG (NY)1.2
PEG (5Y)0.28
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | N/A | ||
| ROCE | 62.12% | ||
| ROIC | 52.97% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 22.67% | ||
| PM (TTM) | 19.16% | ||
| GM | 81.35% | ||
| FCFM | 35.23% |
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
ROICexc(3y)69.99%
ROICexc(5y)80.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.07%
ROCE(5y)17.71%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-15.6%
ROICexc growth 5YN/A
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
F-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 6.71% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.51% | ||
| Profit Quality | 183.81% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.66 |
F-Score4
WACC10.07%
ROIC/WACC5.26
Cap/Depr(3y)17.74%
Cap/Depr(5y)24.54%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.78%
Profit Quality(3y)165.94%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.32%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%18.33%
EPS Next Y8.83%
EPS Next 2Y7.95%
EPS Next 3Y4.73%
EPS Next 5Y2.92%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.39%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.97%
Revenue Next 5Y-1.17%
EBIT growth 1Y12.3%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year24.01%
EBIT Next 3Y6.3%
EBIT Next 5Y8.46%
FCF growth 1Y19.21%
FCF growth 3Y7.53%
FCF growth 5Y17.4%
OCF growth 1Y16.65%
OCF growth 3Y7%
OCF growth 5Y11.09%
DROPBOX INC-CLASS A / DBX FAQ
What is the ChartMill fundamental rating of DROPBOX INC-CLASS A (DBX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DBX.
What is the valuation status for DBX stock?
ChartMill assigns a valuation rating of 8 / 10 to DROPBOX INC-CLASS A (DBX). This can be considered as Undervalued.
Can you provide the profitability details for DROPBOX INC-CLASS A?
DROPBOX INC-CLASS A (DBX) has a profitability rating of 9 / 10.
What is the valuation of DROPBOX INC-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DROPBOX INC-CLASS A (DBX) is 10.63 and the Price/Book (PB) ratio is -6.02.